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Coaching your buyers through the physical inspection "101"

By
Real Estate Broker/Owner with Metro Life Homes RS-78439 / BRE #01708344

So many times real estate transactions fall out after the physical inspection has been done.

Many buyers get scared off if the home is not in perfect condition.

It is VERY important that before the inspection you remind the buyers that it is the inspector's JOB to find things that are wrong with the house.

If he/she were to provide a golden report, it could be taken as him just "phoning" it in, so he/she NEEDS to find SOME things wrong with the house.

Also, I shouldn't even have to say this, but always be at the inspection! Not only is it important for you to provide your input and experience in similar situations, but it's what you're getting paid to do.

Also, remind your buyers that a house is made from ORGANIC materials. Wood, stucco, etc. it all is prone to weather elements and that is a normal thing.

We live in a world with rain, sun, snow, insects, etc. and its just the way it is. It's the homeowners job to do the best kind of maintenance on the home that they possibly can so that some of these normal elements don't get too far out of control.

Everybody has dry rot, everybody has to deal with termites, everybody's home gets rained on.

Bring your buyers into the realm of reality prior to the inspection appointment, and your closing ratio will probably increase.

Comments(8)

Pat, Ben and Martin Mullikin
M3 Realty - Brookfield, WI

Early in a relationship with a buyer, my son and I start talking about inspection issues. We call them "Warts". We even point out obvious warts during home tours. We tell them more than once, "we want you to love your new home, warts and all". Doesn't paint a pretty picture, but gets them ready to accept the imperfections that are bound to appear. Gotta kiss alot of frogs.....

Mar 28, 2010 05:56 PM
Kevin Dunlap
Trident Investments Group - Las Vegas, NV

I have seen a few deals go south due to the overreaction of a nervous buyer.  A knock list of 10 items (all minor) can worry the wouldbe buyer.  A good agent should be able to explain the importance of most items on a report as to how important it may be.  A good inspector can be very picky or not.  As an investor, I prefer the picky one.  Helps with renegotiations.

Mar 28, 2010 06:07 PM
Brian Madigan
RE/MAX West Realty Inc., Brokerage (Toronto) - Toronto, ON
LL.B., Broker

Ralph,

It is what it is, and the price reflects that. If it were a new house with a warranty then it would cost more.

Brian

Mar 28, 2010 11:56 PM
Lottie Kendall
Compass - San Francisco, CA
Helping make your real estate dreams a reality

You make great points, Ralph. In our area the seller generally gets a home inspection prior to putting the house on the market. Prospective buyers are given a whole packet of disclosures, reports, etc prior to submitting an offer. We find that deals fall apart, or are re-negotiated far less often by having so much knowledge ahead of time. Fewer surprises for everyone is a good thing.

Mar 29, 2010 02:47 AM
Ralph Gorgoglione
Metro Life Homes - Palm Springs, CA
California and Hawaii Real Estate (310) 497-9407

Lottie,

You are so right.

Paving the way to reality is much better than the shock of ripping off the blindfold at the last second.

Mar 29, 2010 03:06 AM
Carra Riley & Declan Kenyon
Brokers Guild Cherry Creek Ltd - Westminster, CO
Helping people Transition at all ages!

Ralph....Every resale home will have some inspection items, hopefully minor in nature.  However, if your buyer is stuck on perfection, they may want to look at new as opposed to resale.  I have found that some buyers are indeed new home buyers only. 

cosmic cow

Mar 29, 2010 03:37 AM
Rita Fong
RE/MAX REAL ESTATE TODAY, Executive Broker 901-488-9590 - Marion, AR
Realtor - Marion Arkansas Homes for Sale

Ralph, I told all my buyers don't freak out when they see there are multiple items showing on the inspection report, read it, digest it, most of them are just minor stuffs.  The inspector is working for the buyer, they will write anything he thinks is wrong in the report.  Prepare the buyer is important, most of the time, they depend on us to educate them.

Mar 29, 2010 05:38 AM
Terry Chenier
Homelife Glenayre Realty - Mission, BC

Ralph,

Good post on prepping buyers for inspection. The price can always be adjusted for things amiss.

Mar 29, 2010 09:47 AM